The Truth About The Stock Market 2018


While it is true we seem to be hitting new highs in the stock market almost every week with what appears to be business optimism thanks to a businessman holding the seat of president, it is also true we are living on borrowed time.  But is 2018 the year the market corrects itself, or can the optimism carry us through another historic year all the way into 2019?

The real truth is no one knows.  While almost everything the dooms day economists are warning about is true. Whether it be our growing national debt, manipulation of interest rates, and overvalued markets.  The same truth can be said for the hopefuls.

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We have never had a president that instilled so much hope in businesses, not even Regan.  With a historic level of optimism why couldn't we see the stock market follow historic highs even with all the impending doom and gloom.

And the truth is it could.  It could easily carry through till 2019 as President Trump continues to ease the process of doing business in the States mounting more optimism.  Even on the tail end of one of the longer bull markets to date people have not relented, a time when new investments slow and money begins to trickle out.

 So with all of these unforeseen trends taking place it is easy to see paradise and think 2018 will be nothing but the same, and maybe it will be.  But it could go the complete other way.

While our growing national debt has worried very few over this explosion, many economists are warning common folks of the borrowed time they are playing with.  We owe 20 million dollars, most of which to China, who oh by the way recently has stated its plan to no longer invest in U.S bonds while awaiting their current ones to come to fruition.

 This recent change in the minds of Chinese officials from lender, to collector means whether Americans like it or not they may have to tackle their national debt.  With the Chinese economy facing their own impending disasters, it makes sense to no longer expect the United States largest life raft to disappear.

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Pair this with the federal reserve manipulating the U.S dollar to make it appear more stable then reality warrants.  While the dollar has fallen 5 weeks in a row, interest rates have stayed relatively the same from the Fed as they continue to act as if nothing is wrong.

 But with China, the number one purchaser of bonds, planning to back out the Fed will have to increase bond interest rates to incentivize new buyers, something the Fed has been avoiding to promote the banks since the 2008 recession.  

But these issues have been underlying our country for quite some time so who is to say 2018 will be the year it comes and presents real problems.  logic and reason would say so, but we are also playing on a system history has never seen so the benchmark of what to expect is no where to be seen.  

The best advice for the 2018 market is do not have anything in you are not willing to lose.  If you have had a nice run for the last 5, 6, 7 years and made a pretty penny you need to decide how much is enough.  

Maybe you take some profits off of the table.  Maybe take it all.  Maybe put more.  Only you know what your gut is feeling, and really in 2018 that is your best guide in these crazy times.